Page 144 - InterloopAnnualReport2021

NOTES TO THE

FINANCIAL STATEMENTS

For the year ended June 30, 2021

48. UTILIZATION OF PROCEEDS FROM INITIAL PUBLIC OFFERING
The Company has carried out IPO for setting up two new projects.
- A socks knitting unit in Khurrianwala, Faisalabad, “Hosiery Division - V”.
- A denim stitching unit in Lahore, “Denim Division”.

2021 2020
(Rupees ‘000) (Rupees ‘000)

Estimated cost of these two projects is as under;
Hosiery Division - V 5,909,000 4,504,000
Denim Division 8,325,000 8,325,000
14,234,000 12,829,000

These projects were planned to finance through issuance of share capital to general public and financing from
banks. For this purpose, the Company carried out a successful IPO last year and had secured islamic long term
finance facilities from banks. During the year, estimated cost of hosiery division - V has been revised due to
devaluation of PKR and trial run losses. The increase is being financed through internal cash generation. Detail of
the proceeds from IPO and financing required is classified as under;
2021 2020
(Rupees ‘000) (Rupees ‘000)
Proceeds from IPO 5,024,900 5,024,900
Financing from banks 6,229,523 6,229,523
Internally generated funds 2,979,577 1,574,577
14,234,000 12,829,000

The implementation report of the projects as on June 30, 2021 is as under;

Denim Division Hosiery Division–V
Amount POs issued Amount POs issued
utilized / LCs utilized / LCs
established established
(Rupees ‘000)

Land and building 2,444,354 107,063 1,167,999 383,223
Plant and machinery 2,680,059 163,873 2,649,370 1,443,095
Power and utilities 949,249 50,653 993,025 711,563
Computer and IT equipment 213,383 19,395 36,959 35,644
Miscellaneous expenses 144,879 11,140 – –
Trial run losses 449,927 – 2,988 –
6,881,851 352,124 4,850,341 2,573,525

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